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[DotGNU]auctions: a flawed market? (was Re: Professional online tech sup
[DotGNU]auctions: a flawed market? (was Re: Professional online tech support for GNU/Linux?)
Fri, 12 Jul 2002 02:06:05 -0500
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James Michael DuPont wrote:
Here are my 2 € cents :
ISO-8859-15 is cool. Unicode is still cooler though ;)
* how is price determined?
Via an ebay bidding system, people put what they will pay, and
the developers sell thier time on a market system.
On a mildly related note, I read an interesting article in a recent _The
Economist_ called "Bidding adieu?" It opined that auctions had proven
not to be efficient markets.
It is not free, but I will quote:
Chalk it up to the winner's curse: it is sometimes the most optimistic,
and least well informed, bidder who wins at auction...Thus more bidders
(ie, more demand) can actually lead to lower prices, since each bidder
fears that a larger number of competitors might know more than he
does...An increase in the supply may actually bring higher prices, as
bidders feel less worried about the winner's curse.
DotGNU `Contributor' -- http://www.dotgnu.org
It read like a socialist polemic, but I saw something different. I
saw a business plan in disguise.
-- Michael Tiemann, co-founder of Cygnus Support, on the